Cabinet Approves ₹6,520 Crore for Food Processing Scheme

A view inside a food processing factory showing automated packaging lines, representing India’s expanding food infrastructure under PMKSY
A food production line in action—symbolizing the Cabinet’s recent move to boost processing capacity with a ₹6,520 crore outlay.

The Union Cabinet has approved an increased outlay of ₹6,520 crore for the Pradhan Mantri Kisan Sampada Yojana (PMKSY). This revised funding aims to improve food processing infrastructure in India.

Cabinet Clears Additional ₹1,920 Crore

The new outlay includes ₹1,920 crore in extra funds. The government will use this to build 50 food irradiation units and 100 food testing laboratories across the country.

The Ministry of Food Processing Industries plans to install 50 irradiation units. These units will help preserve 20 to 30 lakh metric tonnes of food each year. The goal is to reduce post-harvest losses and extend shelf life.

100 Food Labs for Faster Testing

The government will also set up 100 NABL-accredited food testing labs. These labs will help ensure food safety and quality. They will support exporters by reducing delays in sample testing.

This funding is part of a broader effort to improve the food value chain. The government aims to increase farmer incomes and reduce wastage. The new infrastructure will also create jobs in rural areas.

The allocation covers the 15th Finance Commission cycle, which runs from 2021-22 to 2025-26. During this period, the ministry will clear more projects under different PMKSY components.

Key Components Under PMKSY

The Pradhan Mantri Kisan Sampada Yojana includes schemes such as:

  • Integrated Cold Chain and Value Addition Infrastructure (ICCVAI)
  • Food Safety and Quality Assurance Infrastructure (FSQAI)
  • Creation of Food Processing and Preservation Capacities (CEFPPC)
  • Agro Processing Clusters (APC)

Government Targets Agri Sector Growth

The Ministry believes that better food processing support will benefit farmers and producers. The government wants to connect surplus produce with markets through efficient processing systems.

The Cabinet’s move reflects a push to strengthen India’s agri-processing ecosystem. The ministry will soon roll out implementation plans and timelines for new projects under the revised outlay.


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